Q1

Life

ZAFCO Newsletter 1st Quarter 2013

Founder’s Day A Tribute to the Late Chairman Industry Review Technical Side

Highlights of the Quarter Enriching the Community, One Blessing at a Time How ZAFCO Invests in Employee Welfare ZAFCO Thinks Unconventional

Calendar of Upcoming Events

Life

ZAFCO Newsletter

ZAFCO Pays Tribute to the Late Chairman on Founder’s Day “His journey continues as we promise to work toward a better ZAFCO under his guidance by embracing his vision, values, and passion” A year has passed since the demise of our beloved Mr. Mohammed Hussain. He was a man with a vision, a leader who embedded his unshakeable values, steely determination and fiery passion into the foundation of the ZAFCO Group. On February 5th, 2013, a day now established as Founder’s Day, the ZAFCO team gathered together to pay tribute to their late Chairman in the auditorium that is now called “Mohammed Hussain Auditorium” in honor of his legacy.

New Name of ZAFCO Auditorium Devoting an hour to share memories and experiences, the team reminisced Mr. Hussain as a father, a hero, an employer, a mentor. The overwhelming respect and love that ZAFCO demonstrated during the event made us realize that we are, indeed, a product of an incredible journey that spanned across decades of hardship and milestones. Mr. Hussain’s simple philosophies and remarkable wisdom were sought after by people from all across the globe, and his words and actions continue to ripple and touch lives.

Rahma Yunus of Shaukath Khanum Memorial Trust To honor the generosity of his spirit, ZAFCO has made a donation to Shaukath Khanum Memorial Trust, a hospital that provides support to cancer patients lacking the resources to fund their treatment.

Mr. Hussain’s undeniable presence and booming voice lingers in the corners of ZAFCO hallways, in the form of his sons as they take on the challenge of continuing their father’s legacy, and in the minds of every member of the ZAFCO family, a family he brought together with his value for people and relationships. His journey continues as we promise to work toward a better ZAFCO under his guidance by embracing his vision, values, and passion.

We miss you, Chairman.

ZAFCO Family

Page 1

Life

ZAFCO Newsletter

Industry Review

2012 has been a honeymoon for manufacturers, where they witnessed a steep decline in raw material costs and did not have to adjust their selling prices because of strong demand for tires, especially in the 1st half of the year from the United States – due to anti-dumping duties on Chinese tires – and Asia, whose economies were still registering higher growth as expected.

The story seems to be ending as we all roll into 2013 with huge pressure on prices due to crippling raw material prices from Q2 2012 till now, and a slowdown in demand after the Chinese anti-dumping duties were removed on imports into US. I personally believe that what happened in 2011 and 2012 stems from a series of events which started from US anti-dumping duties aided by historical natural rubber prices, which resulted in an abrupt shift or tilt towards major manufacturers who were able to factor their costs and leverage on their sophisticated and educated procurement system of raw materials, leaving all those mid and small sizes factories wondering and hesitating to take any position on raw materials. Hence, while Chinese and other small Asians were producing tires at the cost of 15 dollars per lb. of rubber, major manufacturers were still churning the rubber factored at 8 dollars per lb.

With rubber and other raw material prices stabilizing, it is now time for the big boys to face the song of competition from small players as the play field has become even for all.

The majors are sitting on a cash pile of billions of dollars which they have accumulated from their 2011 and 2012 performances. Let us see whether they are going to spend wisely or the quest of doing better than the competition will drown everybody into the same stream. What they should not forget is that they will need this pile of cash in the next 24 months to remain afloat during the huge competition they will face from 2nd and 3rd tier. Rather than smoking the cash in adding new capacities, I would advise them to use it to drive their competition out by doing some serious pricing and marketing investment.

Let us see what happens next in the fight of the bulls. What I see at the moment is that it will be a very fierce and fiery competition for the next 12-18 months with margins going under severe pressure, especially at the manufacturers’ side.

Zafar Hussain Executive Director

Life

ZAFCO Newsletter

Page 2

Highlights Of The Quarter Martino Hosts Grand Opening of New Florida Location Florida, USA: Martino Tire celebrated the opening of yet another retail store in Fort Lauderdale on February 23rd, 2013.

Since ZAFCO International’s acquisition of the retail chain from Goodyear Tire last 2012, Martino Tire now boasts six locations scattered all over South Florida, and is gradually transforming the competitive retail landscape with its unmatched prices and services. Funded by ZAFCO’s vendors, the event was orchestrated as a marketing endeavor to introduce Martino to the local community. The grand opening was not only a tremendous success in terms of turnout and store traffic, but it also generated immediate revenues for the store. A variety of promotional offers were presented to the guests, including free oil changes with the purchase of four tires and “Buy 3, Get 1 Free” to encourage tire purchases.

Along with food, games and prizes, the guests enjoyed goodies such as free hats, flashlights, key chains and tshirts that were generously provided by Goodyear Tire.

Moreover, all the promotion specials at the event were broadcasted live from the store in an effort to maximize publicity.

With the latest Martino addition off to a successful start, the retail chain has established a great presence in the Fort Lauderdale market, and is well positioned to penetrate deeper and grab a larger chunk of the South Florida market share.

ZAFCO in France: A Partnership With Imagine Car ZAFCO was a part of the PNEU Exhibition in Lyon, France last March 12th to 14th. ZAFCO has partnered with Imagine Car to be the official distributor for ZEETEX Tyres in France. It was a successful event given the fact that the expected number of visitors were quite less due to the weather conditions.

Imagine Car Sales Representative said “ZEETEX is an on demand brand here in France and we are very happy that ZAFCO has partnered with us.”

ZAFCO treasures their integrity with their customer and one way of making that possible is to make sure that the quality of the product is top of the line. Most of the visitors and organizers said that ZAFCO had the most beautiful booth in the exhibition. ZAFCO has always presented themselves in a very innovative way. They had the most number of giveaways, like footballs, pens, caps, and non-woven bags which were highly demanded by the visitors.

Page 3

Not only did ZAFCO cater to the needs of their customers, but also to the the need of the environment; the non-woven bags were environmentally friendly and were very useful. The customers were promptly catered to by the diligent sales representatives of Imagine Car and ZAFCO, leaving no customers unattended. Refreshments were also overflowing, and are served with a smile. It was a successful event, indeed!

Life

ZAFCO Newsletter

Highlights Of The Quarter ZEETEX Car Rally in Thailand Uttaradit, Thailand: The ZEETEX team in Thailand, in conjunction with its customers and dealers, organized a car rally in Uttaradit this quarter to promote the brand. “I am so proud of our ZEETEX brand and thankful to the efforts of our customers and Thailand sales team for promoting the brand with passion,” says Polkrit Sirikanjanawong, responsible for ZEETEX sales in Thailand.

The main sponsors of the event were Hankook and Jinyu, and the rally was organized as part of a charitable cause. The excellent and fruitful relationship between the ZEETEX sales team and the dealers, and their collective passion, is reflected in the excitement generated at the rally as everyone worked together to push ZEETEX’s presence in the market.

The sales team feels confident about boosting the brand in Thailand and anticipates bringing ZEETEX to the next level soon.

ZAFCO Awarded Most Innovative Booth at Tyre Expo Asia Singapore: The 2013 Tire Expo Asia was a notable feat for ZAFCO. The company set up a ZEETEX booth, one of the only booths at the show with its very own café, an extension of its new signature café, Café Zee. By incorporating the Café Zee design into the booth, ZAFCO was able to showcase a glimpse of its recent innovative venture in Europe to its customers from across the globe, including South East Asia, Australia, Japan, and Bolivia. The booth was awarded the Silver Award for ‘Most Innovative Design.’

On the second day of the show, ZAFCO hosted a Gala Dinner for its agency brand dealers and ZEETEX dealers from Thailand. The evening saw an entertaining mix of performances, with an Indian Dance, a Lion Dance, and even a Malay group performing “Dikir Barat,” a traditional singing and dancing routine.

Life

ZAFCO Newsletter

The theme of the event was “Growing Together,” highlighting Singapore’s melting pot culture where diverse ethnic groups live and work together. The theme embodied ZAFCO’s own multicultural community and its desire to continue building relationships with customers from all over the world, thriving and growing together.

Page 4

Highlights Of The Quarter ZEETEX and Forceum goes to Philippines Manila, Phillippines: The first roadshow for Forceum and ZEETEX was held in Philippines by SunMaster. The show took place at Max’s, one of the most famous restaurants in Manila. The purpose of the event was to showcase Forceum and Zeetex’s product lines, and educate the audience about Zafco and what we do. Over 30 dealers were present at the roadshow.

SunMaster highlighted their new offerings and services towards the Forceum and Zeetex brands. They also launched their “Level up your store” and “Level up your Life” programs for the dealers. The former entitles a customer to a points exchange program redeemable for certain products at the store such a balancing machine. Points are accumulated through the volume of tires purchased. The latter program entitles a customer to redeem points towards products and activities for himself and his family, including cruises, watches, and even motorbikes.

The event was an overall success in terms of outreach and sales, with Forecum and ZEETEX managing to sell 360 and 320 tire units respectively in just one night.

ZEETEX in Madrid March 15th, 2013 – Madrid: ZEETEX has sponsored some of the giveaway items for Top Recambios, one of Zafco’s valued customers. a Spanish company that participated in Motortec Automechanika Ibérica. Giveaways like bags, USB devices and pens were all ZEETEX branded with the customer’s contact details. Six tire stands were dedicated to ZEETEX PCR tires, while the TBR tires were displayed in front of the customer’s stall.

There were approximately five tire stalls in the entire exhibition, giving us an opportunity to educate ourselves on our customer’s needs and what we, as a company, can do to satisfy those needs. Personally meeting with the customers and providing support is the key to making them happy and gaining their loyalty.

Page 5

Life

ZAFCO Newsletter

Highlights Of The Quarter Russian Dealers’ Trip to Dubai ZAFCO has always kept its customers happy, not only by meeting deadlines and ensuring timely shipments, but also by maintaining good social relationships. Eight valued Russian customers were invited to Dubai as a pre-event before their Otani Convention trip to Thailand. On their first day, after giving them a tour of our stunning ZAFCO headquarters and warehouse facilities, it was time for some fun! They were given a tour of famous landmarks in Dubai such as Jumeirah Beach Resort, Atlantis, Burk Khalifa and Burj Al Arab, all in a beautiful limousine. Dinner was also fancy affair with a remarkable view at the top of Burj Khalifa with the ZAFCO team.

On the second day, a Big Bus City Tour and Desert Safari was arranged, two must-do activities for tourists. Their last day in Dubai ended with an amazing yacht ride that passed through beautiful sites in Dubai, including the Dubai Marina, Palm Jumeirah and World Island. The ZAFCO team shared some wonderful meals with the dealers, and ensured they were accommodated at a five-star hotel on Sheikh Zayed Road. All their traveling expenses were arranged and sponsored by the company. ZAFCO ensured that the customers had a terrific and memorable time in the city, prides itself on taking good care of its valued customers.

ZEETEX Cares: Educating Dealers in U.A.E. on Tire Safety To educate ZEETEX dealers with tire safety precautions and knowledge of a safe drive, ZAFCO organized a ‘Tire Safety Campaign’ for the UAE local market. The ZEETEX team and technical department actively participated in the campaign, giving their dealers safety knowledge, briefing key features of our products and discussing any issues faced by the dealers.

They also gave them numerous giveaways, one of which was a thermos which they really appreciated. Additionally, they pasted ZEETEX stickers on their shops.

The Campaign was a success in bringing the dealers and ZAFCO more closer in Growing Together.

Life

ZAFCO Newsletter

Page 6

Highlights Of The Quarter ZDEGREE Launches Fleet Services at Flagship Store 30th January, 2013: ZDEGREE recently introduced its fleet service center at its flagship location in Al Quoz.

The automotive maintenance company now offers fleet services, facilitating large-scale, automotive services to companies that operate small to large number of vehicles including taxi companies, shuttle buses, delivery vans or trucks. The evening was a terrific success in terms of attendee participation; around 45 partners representing business customers, suppliers, and principals were present.

The event was an excellent way to introduce ZDEGREE’s flagship center and its beautifully designed facilities, as well as demonstrate the ZDEGREE portfolio and its capabilities.

Furthermore, it created a channel to market networking and partnership opportunities. With four service centers open and operational in Dubai, ZDEGREE offers full automotive services including tires, brakes, batteries, mechanical, electrical, and parts.

This is the way we Advertise in U.A.E. In every business shop, it is quite imperative to install a business sign, a shop board or a side board in order to earn recognition from prospective clients. An effective sign board can captivate a prospective client by enticing one to enter the store and discover what it offers. For decades now, sign board have been effectively used to advertise businesses and brands. In ZAFCO’s case, we advertise our tire brands next to the shop name.

UAE Municipality has set certain standards and rules which we have to comply with; accordingly, we prepare artwork for approval. For Dubai and some areas of Northern Emirates, we can still continue with flex sheet and vinyl cut outs for shop board displays (the most commonly used design), whereas in Abu Dhabi and Al Ain, it has become compulsory to make a 3D or LED sign board.

In order to display our brand name on the shop board, we have to ensure the brand is registered with the Municipality in our name for that region.

The selection of shop to advertise our brand is also very essential, and some factors to be considered are: 1- Area/locality of shop 2- The foot fall of our potential customers 3- History of the shop. This media of advertising is also preferred in our business because this is globally practiced; and is always in demand and also to encourage sales by supporting the shop owner.

Page 7

Life

ZAFCO Newsletter

Highlights Of The Quarter Are We Satisfying Our External Customers?

The knowledge of knowing if ZAFCO is meeting the expectations and standards of their customers as well as identifying what the customer needs is the key in providing legendary customer service and to increase their loyalty. One of the questions we have asked the customer is “What attribute do they consider the most important?”, 2011 survey revealed that “Price” is the most important attribute, but for 2012, “Product Quality” has the highest importance.

One of the feedback was: “ZAFCO’s product is among the best quality of tires in the world. It is of high quality.” Quality of the product was never questioned by export customers, and ZAFCO intends to keep getting better. The survey also revealed some points to be improved such as making more sizes available and fulfilling the required quantity of the customer. Some said that the prices are always high and requested to increase the credit limit. But despite these feedbacks, the customers have ranked their overall feel about ZAFCO’s service as “Satisfied”. These points and feedback directly from the customers will be an integral part of making ZAFCO a better company, and will enable better service to its customers. The final result of the survey will be presented to the management and their action plan will be announced in the 2nd quarter.

Contact Person – Sales Marketing Support Product Quality Product range Technical Services Price Stocks Availability Customer Support Services

“ZAFCO’s product is among the best quality of tires in the world. It is of high quality.”

Sarl Nassim Essabkha

Price Product quality Most Important

Most Important

Company Image Contact person -…

2012 Results

Stock availibility Product range

Least Important

2011 Results

Contact person -…

Supply chain service After sales service

Least Important

Battery Campaign in the U.A.E. “Research shows the average lifespan of a poster in a shop window is approximately four weeks, thousands will have walked past your event‘s posters or sat and read your posters.

Repetition of visual exposure towards potential customers created by a high impact poster advertising campaign gives your event publicity the best chance of being remembered and therefore attended.” Our motive was the same, to go in the market and distribute ZEETEX battery posters to our dealers, distributors who are our business partners. We did it personally and placed all the posters on wall and mirrors, so they feel important. Every time they see the poster, they remember us and acknowledge our support. Poster is a very important outdoor advertising activity and the impact lasts for long; as people cannot switch off the posters like TV or Radio. When people drive by billboards or walk by posters on the side of a building, they can choose not to look, but they often do look.

Even if they don't want to, curiosity gets the best of them and by the time they've decided they don't really need to read the poster, they've already read it. That leads to the next advantage.

Life

ZAFCO Newsletter

Page 8

Highlights Of The Quarter ZAFCO’s Technical Team Reveals TBR Fitness Survey Findings No. 1 2 3 4 5 6 7 8 9 10

Brands Bridgestone Retread Tires Michelin Doublecoin Firestone Zeetex Goodyear Sumitomo Longmarch Pirelli

2012 Share (%) 25.44 ↓ 15.78 ↑ 10.70 ↓ 5.74 ↑ 5.21 ↓ 3.01 ↑ 2.59 1.98 1.98 1.37 ↑

2011 Share (%) 34 12 13 2 9 1 3 2 0.5 1

2010 Share (%) 27 16 14 4 11 0.14 5 3 1

Overall Shares Comparison of Top 10 Brands in 2012, 2011 and 2010 The Technical Services Team at Zafco conducted a TBR Fitment Survey in an attempt to determine the UAE market share of various brands in the TBR Segment, and use the findings to identify opportunities for improvement. A sampling methodology was utilized, and the survey sample size comprised of a total of 1006 vehicles and 19,990 tires in Ras Al Khaimah, Fujeirah, Abu Dhabi, and Al Ain. The inspection spanned across 5 days, dating from the 23rd to the 27th of December, 2012.

The findings revealed the following insights on TBR brand shares in 2012: •

Zeetex stands at the 6th position with 3% brand share, leapfrogging from #14 with a mere 1% in market share in 2011.

•

Doublecoin bagged the 4th position with a share of 5.74%, compared to 2% in 2011.

•

Zafco’s overall share, comprising of a portfolio of Doublecoin, Pirelli, Zeetex and Otani, increased significantly, doubling to 10.12% from 5.08% in 2011.

•

Out of 19,990 tires inspected, 84% were new tires and 16% were retreads. Retreads stood at the 2nd position with a market share of 16%, revealing a 4% boost since 2011.

•

Bridgestone still appears to be the preferred choice for customers, particularly in the case of Steer, Trailer 1, and Trailer 3 axle positions with shares of 58%, 23%, and 33% respectively.

•

Retread tires lead in Drive 1, Drive 2 and Trailer 3 axle positions with shares of 22%, 27%, and 35% respectively.

Page 9

Life

ZAFCO Newsletter

Enriching the Community, One Blessing at a Time The Power of a Smile ZAFCO has collaborated with Smile Foundation, a non-profit organization based in India that empowers underprivileged children and youth through education, innovative healthcare and livelihood programmes. Smile’s national level initiative includes its Mission Education Program which promotes universal education and creates the process required to streamline less fortunate children into mainstream educational institutions in a sustainable manner. For its contribution in the field of “Inclusive Education,” Smile Foundation was recently awarded the ‘Quality Initiative Mission Award 2013’ by the Knowledge Resource Development & Welfare Group in New Delhi. Through ZEETEX’s recent venture in Italy, a signature café called Café Zee, the company will support Smile Foundation’s noble cause to invest in a better, and more peaceful, tomorrow by giving the gift of opportunity and equipping the next generation with the power of an education.

One Pint, Three Lives - ZAFCO Thanks Blood Donors Blood Donation Campaign, organized at ZAFCO on Match 14th in association with Dubai Health Authority, went very well indeed. There were 55 ZAFCO members who came forward from all corners of UAE to donate blood. Though only 44 were successful donors. The following are the brave Blood Donors: ABDUL QUDOOS FAROOQI MOHAMED MUBARAK MOHAMED MOHAMMED MIFRAJ ABDUL RAHMAN VALLIKKADAN MOHAMED RIMAZ THUWAN PUTHRA ABID LATIF MOHAMED ZAHID FAZUL MOHAMED AHMED MAHMOUD FAWZI MOHAMED MOHAMMAD FAZULLAH ELBEHIRI MUFFADAL DARBAR AJITH PEREIRA MUHAMMAD AQEEL ANJUM ALEX JOHNSON MUHAMMAD AYUB ASAD ABBAS MUHAMMAD USMAN ASLAM MUHAMMAD NASEEM CHAUDHRY MUHAMMAD BABU VARUGHESE NITIN CHATURVEDI BHASKARAN MOOLAYIL P K K LALITH DEVINDA CHHABI LAL BHUSAL PARESH SINGHEE CHINNASAMY ALAGUVEL PIYASIRI JAYALATH CHOTTA RAM JAT PURNA BAHADUR PURI DEB BAHADUR NEUPANE RAGHAVENDRA SANGA DEEPAK KUMAR RAJEESH MANKADAVIL VELAYUDHAN FAISAL PUZHANKARAYIL REKHA GEORGE GHULAM ABBAS ABDUL KARIM RONALD YAMSON RETURAN HAIDER ALI SIDDIKI SAMINATHAN SUBRAMANIAN IMRAN WILLIAM KEGAN SANJIB BANERJEE JAISON M GEORGE SARWAR CHAUHAN MUNAWAR JINESH CHAMINDA H G DON SHIVA SHARMA KAREN MITCHELLE DE SOUZA SURESH BABU MANDALAPU KASUN AMILA GUNARATHNA SUSAJENTHAN KANAKASOORIYAM WELIHINDA LIYANAG THEVASAHAYAM ETHAYAKUMAR KHUM BAHADUR KUNWAR THRIMURTHULU UNDAMATLA KIRAN GURUNG TITTU THOMAS MANOJ KUMAR HARPALANI VINOTH KUNJITHAPATHAM MARITESS OLEGA ALERA GOVINDARAJ MD SHOFIUL ZAIGHAM ABBAS LILANI MOHAMED IMTHIAS ABDUL CADER ZOHREH KESHAVARZI ALAUDIN

Life

ZAFCO Newsletter

Shaukath Khanum Memorial Trust Helping Keep Legacies Alive

A generous amount was donated to Shaukath Khanum Memorial Trust as a token of generosity depicting one of the characteristics of the late Founder, Mr. Mohammad Hussain.

Shaukat Khanum Memorial Hospital & Research Center (SKMCH&RC) is a modern cancer treatment facility built by the former Pakistani cricket captain, Imran Khan, in memory of his mother, Shaukat Khanum, who succumbed to cancer in 1985.

The hospital was built to treat cancer patients, irrespective of their ability to pay. The Hospital opened to patients on December 29th, 1994, upon the completion of the first of its three phases at the cost of US $22.2million, 67% of this was in the form of donations. The hospital is built on a 20-acre site in Johar Town, Lahore. It is estimated that every year about 150,000 new cancer cases occur in Pakistan.

Ms. Rahma Yunus of SK Memorial Trust , said “The Founder's Day event was very nicely organized. I was extremely impressed by the sentiments of not only the family of the founder but also of the employees. It's nice to see how everyone is working so hard to keep the legend alive. Good luck to all of you.” Giving is a part of the ZAFCO culture, and that is one of the secrets as to why ZAFCO continues to be blessed today.

ZAFCO Goes to Al Noor On Friday, March 18th, 2013, volunteers from Zafco went to the Al-Noor Training Center for children with special needs and developmental disorders. The annual family fundraiser is always a successful event, drawing in a larger and larger number of volunteers every year. This year, the Samsung Al Noor Fun Fair took place at their premises in Al Barsha, where over 500 participants gathered together to support the center’s cause.

ZDEGREE was a bronze-level sponsor and displayed its booth and banners at the fair. In their colorful t-shirts sponsored by ZDEGREE, the 13 volunteers participated in different tasks such as selling used clothes and bags, distributing food, and assorting donations, along with customer engagement.

This is the second year that Zafco has partnered with AlNoor, and we hope to continue being a part of this remarkable mission in the years to come.

Page 10

How ZAFCO Invests in Employee Welfare ZAFCO Leaders Seek Leadership Training and Share Insights In an effort to hone their leadership skills and to promote organizational improvement, the management team of ZAFCO attended Robin Sharma’s leadership training session, “Lead Without a Title.” The three hour conference, which took place on February 25th, 2013 at the Armani Hotel in Dubai, equipped the team with some inspiring leadership advice from a world renowned expert. The powerful simplicity of Sharma’s words gave the ZAFCO leaders an opportunity to step back and conduct a self-assessment with a refreshing new perspective. In an interview conducted with ZAFCO’s Chief Operating Officer, Sebastian Thomas, and Mr. Rishi Vig, Chief Financial Officer, the leaders share their thoughts and lessons from the session:

Q: What was the most useful lesson you learned from this leadership conference?

Q: What advice would you give to your own respective teams to help improve their leadership skills?

A: Leadership is about creating value, and building a team of leaders around you. We are all leaders of our lives and masters of our domain. Lead in such a fashion that when you don’t live anymore, you leave something lives on. We are all neurobiologically wired to achieve great things, but only a few have realized this potential, and those are the true leaders. Break out of your comfort zone and express the talent you were born into. And most importantly, never forget to live your values.

Robin Sharma’s simple and practical leadership lessons reinforce the power of the human mind and its ability to perform wonders when channeled effectively. Sharma redefines the conventional concept of leadership as being driven by one’s position, suggesting that anyone can be a leader.

Leadership is not about a position or a title, but about a philosophy, a way of being. The trick is challenge ourselves, pursue the difficult projects, have the difficult conversations, and the results will be stunning.

A: “Leave people better than you found them.” As a true leader, we must create a positive impact on others and create history. Instead of focusing on numbers alone, create a value system and manage relationships.

As Robin Sharma said, “business is a conversation.” As leaders, we must learn to speak the language and continue this conversation.

ZAFCO International Hosts Annual Get Together Picnic Miami, FL: To celebrate the spirit of the holidays, ZAFCO International organized its first annual get together for its employees and their families on December 16th, 2012. The event, which took place at Florida’s Topeekeegee Yugnee Park, gave the employees of ZAFCO International’s corporate team the opportunity to meet and mingle with Martino Tire’s retail team for the first time since their acquisition at the beginning of 2012. The get together was not only an excellent way for employees to escape from their day-to-day routine, but also an opportunity to warmly welcome Martino Tire into ZAFCO’s extended family.

A wide variety of activities were organized for the guests, including a karaoke competition, bounce houses for the children, a photo booth, and a mega raffle with giveaways such as gift certificates redeemable at any Martino Tire store, redirecting store traffic internally and encouraging employees to visit Martino. The team further engaged in the spirit of giving through a secret Christmas gift exchange where employees surprised each other with small presents. The event proved to be a day of laughter, gratitude, and good company! ZAFCO International hopes to continue this tradition of hosting an annual gettogether in the future.

Page 11

Life

ZAFCO Newsletter

How ZAFCO Invests in Employee Welfare A Day of Training with HSBC March 12th, 2013: As part of ZAFCO Academy’s efforts to promote employee training in the workplace, ZAFCO invited its employees to attend HSBC’s training session on Trade Training. Hosted by a Subject Matter Expert, the training included a series on “International Payment Methods in International Trade” and “Commercial Guarantees,” giving employees an excellent refresher course and the opportunity to enhance their knowledge. For anyone with the desire and curiosity to gain insight on the dynamics of international trade, the training was a great way to learn how an increasingly complex and globalized economy impacts multinational presence.

ZAFCO Launches Transparency Mechanism in Workplace The beginning of every year continues to bring innovative measures for improvement at ZAFCO. This year, the company resolved to cultivate a culture of transparency and openness in communication between employees and leaders by developing a mechanism for Online Anonymous Reporting.

Employees who wish to share any concerns now have a platform whereby they can lodge all their queries and feedback directly to the Executive Directors Office with the comfort of anonymity.

The purpose of this tool is to ensure the company receives valuable input from all corners of the company. Every member of the ZAFCO family should be given the opportunity to freely express in a safe realm. Moreover, ZAFCO prides itself on being a values-based organization. The company strictly believes in fostering an ethical culture, one that is demarcated by clear morals, and promises to proactively address employee feedback by converting them into solutions. The launch of this online channel is yet another milestone towards making ZAFCO a more transparent and conscientious organization.

Six Teams, One Spirit, One Win: Team Zafco Plays Cricket Tournament March 1st, 2013 – Sharjah: Employees from the retail and warehouse teams competed against one another in a fierce cricket tournament. Last year, it was initiated by the Jebel Ali warehouse team led by Mr. Shiv Sagar Gurang, Mr. Frank Perera and Mr. Khalid Hussain. This year, it was the Sharjah team headed by Mr. Zaheer Abbas Merchant and Mr. Mozammil Abdul Razak Shaikh. From 10 am to 6 pm, the six teams, led by their captains, shook the Sharjah cricket stadium with their impressive performance: 1.

2.

3.

4.

5.

6.

Zafco Stikers – Captain Senthil Zafco Thunders – Captain Mohammed Usman Zafco Challengers – Captain Zaidi Zafco Sharjah Super Kings – Captain Zaheer Abbas Zafco Warriors – Captain Chaminda ZDEGREE Blue Riders – Captain Rony Lobo

Trophies were given to the winners, along with special awards: • • •

Winner – Zafco Sharjah Super Kings 1st Runner Up – ZDEGREE Blue Riders 2nd Runner Up – Zafco Strikers

• • •

Man of the Series – Chaminda Best Batsman – Gaya Kumar Best Bowler – Naveed Ahmed

Page 11

Life

ZAFCO Newsletter

Employee of the Month awards were also handed out at the event, led

by HCM Manager, Mr. Zaigham Lilani: • Employee of the Month (Staff Category) – Shiv Sagar Gurang • Employee of the Month (Skilled Category) – Anamul Hoque

Congratulations to all the winners! It was a great event for all the employees, especially since their managers were present to offer encouragement and support. The next tournament will be held in 2014, this time organized by the Abu Dhabi team and led by Mr. Bhaskaran Moolayil and Mr. Shymon Ambookan. May the best team win!

Life Page 12

ZAFCO Newsletter

ZAFCO Thinks Unconventional Café Zee: How Tires and Coffee Can Brew a Better Generation Naples, Italy: ZEETEX has inaugurated its first signature café, Café Zee on 26th January, 2013 in corporation with its distributor, Daisy Tires. Located within Daisy Tire’s retail outlet in Naples, the idea of a café was originally developed as a store-within-a-store concept to offer a customer a few moments of relaxation over a cup of coffee as he browses the retail store. “Think Emirates A380, and the lounging area/bar for passengers to briefly escape. That’s what we aimed for,” says Rashmi Bhola, Vice President of Sales for Europe.

The concept slowly evolved to function as a subtle marketing campaign for ZEETEX as the customer is visually targeted through the brand logo and colors, sparking curiosity and subconscious brand awareness.

Moreover, the innovative platform of Café Zee provides ZAFCO with a way of contributing to the enrichment of society through collaboration with Smile Foundation, a non-profitable organization based in India whose Mission Education Program focuses on providing basic education and healthcare to underprivileged children on a national level. “Café Zee is our way of saying thank you to society by giving back to them through our collective efforts with our patrons,” says ZEETEX representative. It is a platform that will enable ordinary people to be a part of an extraordinary cause by making a small contribution with a large impact on the next generation.

The brand ZEETEX was established in 2005, and its product portfolio comprises of tires, batteries & lubricants and offers over 600 differentiated items for the automotive industry. We hope this non profitable effort will create a spark that will lead to a better future for the coming generation. ZEETEX plans to open three signature café in Italy Germany & France by the end of 2013.

ZDEGREE Launches the First Online Portal for Tires in the U.A.E. ZDEGREE has introduced a unique way to serve automotive customers in the UAE with the launch of www.myzdegree.com/tires.

The online portal allows customers to buy tires at the click of a mouse from the convenience of their home or anywhere they are.

Once the customer places an order online, our mobile service van and staff will be at their doorstep to replace the tires and also provide other services like wheel balancing and nitrogen filling. The unique concept has generated great interest since its launch in January 2013. To generate awareness we leveraged online advertising and direct e-mailers and introduced a live chat facility on the website to provide prompt customer feedback and a toll free number 800 ZDEGREE was set up to take any customer queries. So far the campaign has delivered 880,704 impressions, 1,086 clicks and 500 unique visits per week. We also created a Facebook ZDEGREE page to engage customers. We have more than 500 Facebook fans helping to generate customer inquiries of more than 150 per week. We will reinvigorate our online campaign from March month with added emphasis on Google search marketing, display and advertising, direct mailing through popular portals like Timeoutdubai.com and Dubizzle.com. We have plans to organize roadshows in high footfall shopping malls, commercial and residential areas (more than 84,000 villas and apartments) to reach out to more customers. ZDEGREE portal currently has 16 vehicle brands and provides nine different tire brands with more than 1,400 of stock keeping units (SKUs).

Our aim is to become the one stop online portal for automotive tire service needs in the UAE. Page 13

Life

ZAFCO Newsletter

Stay Tuned!

Page 14

Life

ZAFCO Newsletter

Life

ZAFCO Newsletter